NADA urges dealers to back pro-consumer finance bill
NADAês battle to tame the Consumer Financial Protection Bureau continues and Senate bill S. 2663 is the next chapter. The bill, entitled Reforming CFPB Indirect Auto Financing Guidance Act, is identical to last yearês House bill, H.R. 1737, which passed the House with a resounding, veto-proof majority vote of 332-96, including 88 Democrats. Democrats and Republicans from both sides of the aisle have recognized a simple truth: Every consumer deserves access to competitive financing and great rates when they buy a new car or truck.
Like H.R. 1737, the bill would rescind the CFPBês flawed auto finance guidance, and make the bureau more transparent and accountable when issuing future guidance. The bill calls for a public comment period, coordination with regulatory agencies that possess authority over dealers and a study of the impact of the guidance on small businesses and, most important, consumers.
S. 2663 is a moderate bill that does not dictate a result. Itês important that dealers nationwide urge their senators to support S. 2663 when it comes up for a vote. Because of the shortened congressional session with the Presidential election looming, we need to be ready for a vote at any time.
The bill allows for transparency and public notice so the public has an opportunity to analyze and comment on the CFPBês attempt to change the auto financing market via guidance. And it protects fair credit laws and their enforcement in order to safeguard equal opportunity in auto financing.
Weêre fighting for what dealers have known from the beginning: Our current system of convenient dealer-assisted financing is fair and competitive. It boosts access to affordable credit for consumers and saves them money.
At the same time, NADA supports the Senate in its oversight to ensure that the CFPBês actions do not hurt consumers, especially those with less-than-perfect credit. If the CFPB intends to disrupt our highly efficient model, it can only be justified through reliable and sound analysis. Yet the CFPB continues to try to eliminate a dealerês ability to discount credit for consumers, despite a clear prohibition in Dodd-Frank against regulating dealers.
The optional NADA/NAMAD/AIADA Fair Credit Compliance Policy & Program is being adopted by a growing number of franchised dealers. Many are taking proactive steps to ensure that the deserved participation we earn when arranging financing falls within the Equal Credit Opportunity Act. Each of the three major credit application aggregators has licensed the use of the program to facilitate its adoption and implementation by dealers.
The significant flaws in the CFPBês policy do not serve the nationês 16,500 franchised dealers or the consumers they proudly serve.
A good way to contact the four senators from Maryland and Virginia on S.2663, per Jeff Carlsonês article above, is by faxing a letter to them on dealer letterhead as follows:
The Hon. Barbara A. Mikulski, (D-Md.)
United States Senate
Washington, DC via fax (202) 224-8858
The Hon. Ben Cardin (D-Md.)
United States Senate
Washington, DC via fax (202) 224-1651
The Hon. Mark Warner (D-Va.)
United States Senate
Washington DC via fax (202) 224-6295
The Hon. Tim Kaine (D-Va.)
United States Senate
Washington DC via fax (202) 228-6363
A copy of WANADAês faxed letter to our four senators on S. 2663 is attached at the end of this Bulletin
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